Accounting Cycle quiz

Financial Accounting Quiz

On Apr 10, 2026

Accounting Cycle

10 questions in 10 minutes

Pass Score 70%

1 / 10

Current assets are listed :

alphabetically

by importance

by expected conversion to cash

by longevity

2 / 10

An account that will have a zero balance after closing entries have been journalized and posted is :

Supplies

Service Revenue

Prepaid Insurance

Accumulated Depreciation—Equipment

3 / 10

Which types of accounts will appear in the post-closing trial balance?

None of the above

Temporary (nominal) accounts

Accounts shown in the income statement columns of a worksheet

Permanent (real) accounts

4 / 10

The correct order of presentation in a classifed balance sheet for the following current assets is :

cash, accounts receivable, inventory, prepaid insurance

inventory, cash, accounts receivable, prepaid insurance

cash, inventory, accounts receivable, prepaid insurance

accounts receivable, cash, prepaid insurance, inventory

5 / 10

When a net loss has occurred, Income Summary is :

credited and Owner’s Capital is debited

debited and Owner’s Drawings is credited

debited and Owner’s Capital is credited

credited and Owner’s Drawings is debited

6 / 10

Which of the following statements is incorrect concerning the worksheet ?

The worksheet is distributed to management and other interested parties

Financial statements can be prepared directly from the worksheet before journalizing and posting the adjusting entries

The worksheet is essentially a working tool of the accountant

The worksheet cannot be used as a basis for posting to ledger accounts

7 / 10

A company has purchased a tract of land. It expects to build a production plant on the land in approximately 5 years. During the 5 years before construction, the land will be idle. The land should be reported as:

a long-term investment

land expense

an intangible asset

property, plant, and equipment

8 / 10

Cash of $100 received at the time the service was performed was journalized and posted as a debit to Cash $100 and a credit to Accounts Receivable $100. Assuming the incorrect entry is not reversed, the correcting entry is :

debit Accounts Receivable $100 and credit Cash $100

debit Cash $100 and credit Service Revenue $100

debit Service Revenue $100 and credit Accounts Receivable $100

debit Accounts Receivable $100 and credit Service Revenue $100

9 / 10

In a worksheet, net income is entered in the following columns :

income statement (Dr) and balance sheet (Dr)

income statement (Cr) and balance sheet (Dr)

income statement (Dr) and balance sheet (Cr)

income statement (Cr) and balance sheet (Cr)

10 / 10

In a classif ed balance sheet, assets are usually classifed using the following categories :

current assets; long-term investments; property, plant, and equipment; and tangible assets

current assets; long-term investments; property, plant, and equipment; and intangible assets

current assets; long-term investments; tangible assets; and intangible assets

current assets; long-term assets; property, plant, and equipment; and intangible assets

Your score is

Question topics

Classified balance sheet

Prepare a worksheet

Preparing adjusting entries

Preparing closing entries